Zucchet v. Galardi
Annotate this CaseDefendant-appellant Michael Galardi appealed the trial court's order denying his special motion to strike under the anti-SLAPP statute in a malicious prosecution action brought against him by Michael Zucchet. Galardi owned several strip clubs in Las Vegas and one in San Diego. In 2000, the San Diego City Council enacted a "no-touch" ordinance, which banned touching between exotic dancers and patrons in strip clubs. Galardi hired Lance Malone as a lobbyist to try to obtain repeal of the ordinance. Malone's lobbying activities included meeting with and making campaign contributions to members of the San Diego City Council, including Zucchet, who was elected to the city council in November 2002. In 2001, Malone made campaign contributions to city council member Ralph Inzunza, and Malone and Inzunza discussed a strategy to repeal the ordinance. Inzunza and Malone arranged to have an ostensibly corrupt police officer (who turned out to be an FBI informant) express public support for the plan. Inzunza advised Malone to contribute to Zucchet's campaign. Malone attempted to make a $6,750 contribution to Zucchet's campaign in 2001, but Zucchet returned the money because it was a political liability to be associated with Galardi's adult entertainment business. In 2002, Malone donated approximately $5,000 to Zucchet's campaign in checks that were not traceable to Galardi through one of Galardi's employees (and who also turned out to be an FBI informant). In 2003, the government executed a series of search warrants, raiding city hall. A federal grand jury indictment was filed, naming Inzunza, Zucchet, Galardi, Malone and others as defendants in numerous counts of fraud and other crimes, all arising from the scheme to repeal the no-touch ordinance. Galardi agreed to enter a guilty plea to a charge of conspiracy to commit wire fraud and agreed to cooperate with the government's prosecution of the other defendants. After an approximate 11-week trial, the jury acquitted Zucchet of 28 of the 37 counts against him. Zucchet filed this lawsuit against Galardi in October 2012, asserting a single cause of action for malicious prosecution. Zucchet alleged that: (1) Galardi falsely told the United States Attorney's Office that he had given $10,000 in cash to Malone to bribe three city council members, including Zucchet; and (2) Galardi falsely testified to that cash bribery during the criminal trial against Zucchet. Galardi filed a special motion to strike the complaint under the anti-SLAPP statute, arguing that the complaint arose from activity protected by the anti-SLAPP statute because it arose from statements he made during Zucchet's trial and to the United States Attorney's Office in preparation for that trial. The trial court granted the special motion to strike, concluding that Galardi had not rebutted the allegation that his conduct was illegal and therefore not protected by the anti-SLAPP statute. The trial court also concluded that Zucchet had established a probability of prevailing on his malicious prosecution claim. As permitted by the anti-SLAPP statute, Galardi filed a notice of appeal of the order denying his special motion to strike. After review of the matter, the Court of Appeal concluded that the trial court erred in denying the special motion to strike, reversed and remanded for further proceedings.
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